Buyers struggle to find homes
Finding the right house is the biggest obstacle for people looking to buy a new home, according to the latest market soundings.
The survey findings point to increasing evidence of a supply crisis in the family homes market, particularly in Dublin.
Half of 1,800 respondents to an online consumer sentiment survey, conducted by property website myhome.ie, said the biggest problem they faced in looking for a house was the shortage of suitable houses.
Meanwhile, 57 per cent of those surveyed said they believed property prices were rising or stabilising in their area.
“According to our survey two-thirds of people who intend to buy a home next year are living in the Dublin area. The supply situation is most acute in the capital,” said Angela Keegan, managing director of myhome.ie.
She added that the recent announcement that Nama will finance the building of up to 4,500 properties in the capital was a welcome initiative.
“The banks also need to tackle the mortgage arrears and repossession issue in a systematic manner and free up properties for sale. Currently there are only 3,800 properties for sale in Dublin – a year ago the figure was 5,000,” Ms Keegan said.
Financial concerns are becoming a primary motivator for many house-sellers, with 17 per cent of those surveyed saying they were putting their homes on the market because they could no longer afford the mortgage.
Some 11 per cent said they were selling to release equity in their homes, while 8 per cent said the decision was due to divorce or separation.
Eighty per cent of respondents said they were worried about having to pay a full property tax and water charges next year.
The survey also found that one-in-four homeowners set a lower rate than the estimate suggested by Revenue when paying the property tax, while just under two thirds went with the Revenue figure. Some eleven per cent said they went with a higher figure.